The price consumption curve shows us
A. the substitution effect of a price change.
B. the total effect of a price change.
C. the changes in nominal income that occur for a price change of a good.
D. whether we spend more or less on a commodity when its price changes.
Answer: D
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If there is a change in the U.S. endowment of factors of production, then there would be
A) shifts in just SRAS. B) a movement along the SRAS curve. C) a shift in both LRAS and SRAS. D) a shift in just LRAS.
How would each of the following events affect the level of employment and the real wage rate? Explain which curves in the labor market diagram would be affected and show your work
(a) The stock market falls sharply. (b) A war destroys a substantial amount of a country's physical capital. (c) A new law reduces immigration of workers into the country.
What are the factors that contribute to productivity growth in the market economy and which of them is considered most important?
What will be an ideal response?
Which of the following expenditures would not be included in GDP?
a. Purchase of a new lawnmower. b. Purchase of a silver cup previously sold new in 1950. c. Purchase of a ticket to the latest movie. d. All of these would be counted in GDP.